Ready Set Sold with Bryan Vogt #42-01: Renee Wittenauer: 3 factors to consider whether to lease or buy

Welcome to Ready Set Sold with your host Bryan Vogt. Are you wanting or even thinking about selling your house but don’t know what it starts good thing you found Ready Set Sold and now real estate broker Bryan Vogt.
Good morning everyone welcome to Ready Set Sold I’m your host Bryan Vogt. How are you doing the weather is just always crazy this time of year I mean I have to start with that because Sunday we have a snow storm and then by Tuesday we’re having light jackets on and the snow is pretty well gone and life goes on and this is springtime in the st. go as much we gotta love it let’s go into also the market and that’s what we’re welcome to and so we’re loving it I’ve been talking to the last probably month or so and really it’s true if you were even thinking about selling your home maybe you had some bad experiences even as late as last year November December doesn’t work out I would highly encourage you to get back on the market because we’re seeing some amazing things shortages that we’re finding out buyers trying to find homes is really going to be a problem.
In that side to the buyers but that’s a great problem if you’re the seller so more people are getting prices are asking for and at time factors that we haven’t seen for a very long time as far as the speed of which buyers are acting upon with that said we’re also going to be talking about the other side of the coin and that is leasing I have Rene what an hour who is with Cecil Property Management Rene you’re there hi Brian Mario I’m doing great thanks so much for joining us and what we want to talk about today in this segment is talking about the factors when it comes to leasing versus buying so if you’re a buyer you know maybe it’s a great idea to buy a home but not always not always and you’ve got some thoughts on that.
Some things that you want to talk about Rene as far as leasing options versus buying yeah definitely a lot of people you know of course the one of the big dreams of every American is homeownership so a lot of people look forward to buying their first home upgrading and going to their second home and then you see as people tail off and retire they may end up renting instead of buying because they don’t want the headaches and everything that come with buying so renting can be a really good option for people if you’re looking for something with less responsibilities less maintenance you don’t have to worry about roof replacement siding replacement if a big storm comes through or just your general normal wear and tear.
We have a lot of great condo communities around here where you can rent in there and then you know your lawn care is included so you don’t have that responsibility of having to take care of the exterior as well that also goes you know true for any maintenance that goes on in the house so if somebody ends up renting instead of buying and their you know water heater breaks and floods the basement they may have their contents to worry about but as far as a big picture with the owners that would fall underneath the owners insurance so it’s just a little more ease of living I guess whenever you go to rent instead of buy so there are some people that would prefer that as well.
Well that’s a good point and I think I’m sure that what you described rarely happens but it’s still out there as far as any type of flooding or having anything major happen to it but it is it can be a factor they can people have to be aware of and know about the other thing that we run into and make it you running the same thing is sometimes people are coming in um from on town and yes military is a good example but there are people that actually move down to you know from Chicago we had just recently somebody coming in from California and that could be a situation where they’re not sure their circumstances maybe you know.
This is a new position they’re taking but another hundred percent sure they not trying to put a jinx of anybody but they’re not sure if this is going to be a permanent or maybe that’s a one year or a year and a half situation and they know they’re very moving on that would also make sense right definitely yeah we get a lot of people that are looking I’m especially being close to St. Louis and what the hospital you know coming into the O’Fallon area and then St. Louis where you know for various reasons they’re getting job transfers to this area and they just want to get to know the area first before they rush and you know come here on a weekend find a house buy it leave come back to move in kind of thing.
So it’s a good way if you’re renting it’s a good way to basically kind of test drive this area see exactly where you want to live see how your commute is make sure that you like your new job that way you don’t you know move across country or you know move from wherever and you end up starting a new job and if that job doesn’t work out then you’re locked into a house that you bought so and we see that happen it’s not something that happens all the time but I mean you do definitely have where people may get a different promotion or another job comes up and they have to move quickly so a good question to ask whenever you’re coming and how long do you plan to stay here you know is this job only going to look to be a two-year job a 3-year job.
Do you see it being you know 10 20 years down the road because that’ll be a good gauge – as far as does it make sense for you to rent or does it make sense for you to buy in other words is this maybe a stepping-stone depending on especially larger companies it’s not in the military would be a company – I mean their business in themselves but it could be a situation where we’ve seen it happen I’m sure your same thing with you just tying in with sky Air Force Base is that there are positions that people come into that really are shutting out maybe temporary but could be full-time but they don’t really know so leasing could be a strong option for those – yep yeah definitely and so whenever you’re looking in your weighing you’re buying versus renting option you know it’s good to keep in mind if it isn’t you know.
If you want to be here two years but you really want to buy a house is to do the research before and find out what it would rent for you know so I want to buy a house I know I’m only going to be here two years but I see this home being a great investment for me to keep long-term so do your research along – along with making sure that you get a good sale price but do your Reese to see if you will be able to rent it whenever it’s time for you to either move on to a different location or move up to a different property so that’s where I can come in as a property manager and I had people reach out to me all the time that says hey if I were to rent this house what would the rent price be because they want to see what it compares to their mortgage.
Sometimes they find they can rent it cheaper than they can buy it sometimes they find they can buy it cheaper than they can rent it so then it’s a great investment for them to live in for those two years and then whenever they leave they got an investment property that could have you know benefit their retirement portfolio down the road I love that – and we’ve had that I’m sure you have – we’ve had situations enough and I just talked about the military doesn’t always have to do the military but that’s a big for special in the metro region st. Louis area that recently too long ago we had a military person coming in and they actually had two other houses and they used that that same strategy that they talked with a leasing company along with talking with the rotor and found out that you know what their numbers could work out to where they literally are using that as a retirement I mean that is they’re putting their 20 years in being you know the situation 20 years in and knowing by that period of time that not only were the house be paid off the way they structure the deal but they had that income coming in which gives a more flexibility.
So I love that approach where you pointed that out it’s great I had a agent I talked to the other day and she had asked me about in a property that was for sale and she had a fire that would think thinking about buying it as an investment and what she asked me the rent price so I researched it and the high price I shot her was about three hundred dollars month lower than what his mortgage payment would be you know so I was able to come in and you know urge them to be cautious and do some more homework on it because the investment to me didn’t match up and then I’ve also been able to deliver great news where it’s like yeah you need to do this because you’re going to make you know $500 a month more than your mortgage payment so it’d be a great investment.
So it can help you know people get really good deals and avoid the really bad deal stuff too and he we talked about this before but I think it’s always about getting your information getting you know what’s best for you as a client as whether you’re buying are you been leasing finding out what your situation is and then that’s so important the more information that people have they can best make their decisions there’s no guarantee as you know that Renee but you know things do change in markets but again at least having a roadmap of where you think you can how this can turn out and I’m sure you’ve run into this too and you can talk about those too a lot of people love it here I mean they come here they do biome and the idea is they plan on coming back that maybe they are going to be out for three or four years or even two or three years and come back so that’s a win-win again.
I love asking whenever I go on a new listing appointment and you know using the military as an example and they’re getting orders and they’re leaving I love the question of do you plan to come back some people say no you know we’re going to retire elsewhere but some people they love the area you see the excitement in their voice they light up you know their face lights up they got a big smile on the face and absolutely we want to come back and that helps me and my pricing and my marketing and just knowing the end result that they’re wanting to that okay this is a long-term investment and they want to come back and move in real easy it’s not a quick turn kind of thing so that helps everybody get on the same page too and work the numbers how we need to make it work and oh somebody else can pay off their house for a few years.
And whenever they retire they come back and it’s you know low mortgage or mortgage payment free on it awesome I love that I love that run during that time for this segment we’ve been talking with Renee Witnaur of Cecil property management had some great information but we’re gonna be back with Renee talking about what to look for in a property manager and that is so so critical not just a property manager but also who you’re gonna be leasing it from the landlord we’ll be back in a few minutes.